Why Bajaj Finserv Flexi Cap Fund Can Be A Suitable Option for Long-Term Investors

The market changes and evolves frequently, and adaptability is often an important facet of long-term investing. One mutual fund category that can dynamically adjust to different market conditions is the flexi cap fund.

A flexi cap fund is an equity mutual fund that can invest across large, mid and small cap companies and can freely adjust its portfolio allocation between the three based on market movements.

One compelling investment option in the flexi cap fund segment is the Bajaj Finserv Flexi Cap Fund. Following a MEGATRENDS strategy, the Bajaj Finserv Flexi Cap Fund seeks to identify and invest in long-term changes with wide-ranging impact.

This article tells you more about the Bajaj Finserv Flexi Cap Fund and why it can be a suitable option for long-term investing.

How Bajaj Finserv Flexi Cap Fund leverages megatrends for long-term investing

The Bajaj Finserv Flexi Cap Fund follows a megatrends investing approach, focusing on identifying potential future market leaders. Megatrends are transformative forces like technological advancements, urbanization, renewable energy, and demographic shifts that influence economies, industries and societies. Fund managers of the Bajaj Finserv Flexi Cap Fund identify current and emerging megatrends that offer investment opportunities. This helps them build portfolios that are oriented to harnessing lasting and long-term growth potential.

Here are some of the benefits of megatrend investing that the Bajaj Finserv Flexi Cap Fund seeks to capture:

• Long-term growth potential: Stocks aligned with megatrends can offer significant growth potential over time as these are trends with lasting and widespread impact.
• Mitigating risk: Companies aligned with megatrends can potentially be better prepared for future challenges.
• Enabling strategic investments: A forward-looking approach allows fund managers to optimise long-term return potential.
• Securing early-mover advantage: Identifying megatrends early on enables investors to capitalize on growth before markets catch up.
• Accessing global opportunities: Megatrends span geographies, unlocking emerging international investment prospects.

By focusing on megatrends, investors position themselves to benefit from long-term global changes and disruptive advancements while building future-focused portfolios.

Why Flexi cap funds are suitable for long-term investors

1. Diversification of investment
A key advantage of a flexi cap fund is that it provides diversification. By investing across large-cap, mid-cap, and small-cap stocks, the fund can leverage the opportunities and benefits offered by each:
● Large-cap stocks can offer relative stability as these companies are well-established.
● Mid-cap stocks provide higher growth potential, with more risk.
● Small-cap stocks carry significantly high risk but can generate higher return potential as they have the most scope for expansion.

This approach can help optimise the risk-return balance of these funds in comparison to those that focus chiefly on one market segment. For long-term investors, such diversification can be crucial because it protects the investment during market downturns while providing opportunities during uptrends.

2. Flexibility to adapt to market conditions
Flexi cap funds are dynamically managed. This means that the fund manager has the flexibility to shift investments among different market cap segments depending on how the market is performing. This helps in capturing the growth potential of any sector or company while avoiding underperforming segments.

For instance, during economic recovery, mid-cap and small-cap stocks may perform. In contrast, during volatile markets, large-cap stocks may offer relative stability. This adaptability can be beneficial for long-term investors who are likely to witness different market cycles over their investment tenure.

3. Focus on long-term wealth creation
Equity mutual funds, including flexi cap funds, are generally suited for long-term investments. History* has shown that the equity market has the potential to grow over time, despite short-term fluctuations. (*Past performance may or may not be sustained in the future).

4. Professional fund management
Flexi cap funds are managed by professional fund managers with experience and knowledge of the markets. They actively monitor the performance of companies, sectors, and the overall economy to make investment decisions.

How to invest in Bajaj Finserv Flexi Cap Fund

Starting your investment in a flexi cap fund is simple. You can begin with a lumpsum investment or through a Systematic Investment Plan (SIP), depending on your preference.

Those who want to make a one-time lumpsum investments can consider using a mutual fund lumpsum calculator to plan their investments strategically. By entering the investment amount, expected rate of return, and investment duration, you can estimate how much your money might potentially grow over time. You can also adjust these inputs to arrive at an investment amount or tenure that suits your requirements.

You can invest either online or offline, depending on your preference. You can invest directly through Bajaj Finserv AMC (www.bajajamc.com) or through a registered mutual fund distributor. You can also invest through aggregator platforms and other registered avenues. The minimum investment amount is Rs. 500 for both SIP and lumpsum.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.